What a Reversal Candle Pattern Is & How to Trade with It

Reversal candle patterns are an important tool within a trader’s toolbox. They’re useful in crypto trading because the market can make violent trend changes, causing large losses in a trader’s account.

There are several powerful reversal candle patterns that, once observed, can easily be utilized within a trading strategy. We’ll review reversal candle patterns, how they differ from retracements, and the most common ones you’ll see.

What Is a Reversal Candle Pattern?

A reversal candle pattern is a formation of Japanese candlesticks arranged in such a way as to indicate the end of an existing trend in favor of an opposing one.